`VympelCom’ to Fully Control Armenian `Daughter’

`VympelCom’ to Fully Control Armenian `Daughter’

Arminfo
2007-03-23 15:52:00

The "VympelCom" is still interested in buying of the rest package of
shares of "ArmenTel" Company, the PR Manager of "VympelCom" Yelena
Osadchaya said, commenting on the decision of RA Government about
purchase of the remaining 10% of shares of "ArmenTel" to "VympelCom"
at 50 mln Euro.

As the RBC daily reports, the Russian Company will pay for each share
as much as it was received by the Hellenic Telecommunications
Organization (OTE) Greek Company that had sold 90% of shares to
"VympelCom" at 341,9 mln Euro. "We have received an official proposal
and now we are waiting for the deal to be shortly completed. The
"VympelCom" is still interested in buying of the rest package",
Y. Osadchaya said. According to her, every new subscriber will cost
the Company $100. This amount includes both the technical expenses for
the network development and the marketing expenses. Later on, the
Company intends to carry out a re-branding of ArmenTel’s mobile
section. The cell communication market in Armenia is yet far from
satiety. The Lebanese VivaCell with a subscriber base over 650,000
people is working in the country besides "ArmenTel". The indicator of
the Armenian "daughter" of "VympelCom" is more frugal as yet. Its
subscriber base numbers over 450,000 people. The cell communication
penetration indicator in the country makes up about 30%.

The "VympelCom" does not yet inform how it intends to handle the
assets of the fixed communication. The analyst of the "Veles Capital"
IC Ilya Fedotov does not the necessity in selling this section. "The
Company my obtain an experience in the new area and diversify it
business. The operator will develop convergent services on the asset
basis", the analyst said.